Commercial Real Estate Blog

In some ways, a commercial real estate construction project is just like any other project. There is a start date, several interim milestones, and an end date when the property is complete and a certificate of occupancy has been issued. However, a commercial real estate construction loan is not like other loans. It is distinguished by the fact that the loan balance starts at $0 and rises over time …

[Read more...] about Understanding the Construction Draw Schedule

There is a wide spectrum of lease types in commercial real estate. To make it easier to communicate with others, it is not uncommon for complicated leases to be described using simple language. The ‘double net lease’ in commercial real estate is a term that describes a certain type of lease agreement, but it’s not always as simple as it might sound. In this article we’ll take a closer look at the …

[Read more...] about How The Double Net Lease Works

There’s no doubt about it, construction lending is tough.  From changing interest rates, long lead times, and freak weather events, there are a myriad of risks that can derail a project.  However, from a lender’s perspective, there’s one risk that is top of mind when making a construction loan - the borrower’s ability to make their loan payments during the construction term. To protect …

[Read more...] about How to Calculate an Interest Reserve for a Construction Loan

Every investment involves a certain amount of risk. There are certain general sources of risk that influence all assets – things like geopolitical risk and global macroeconomic risk. What makes each asset unique is the level of sensitivity that its rate of return has to those risks. In addition, specific types of assets have risks that are uniquely their own. In this article, we’ll look at eleven …

[Read more...] about Eleven Types of Risk in Commercial Real Estate

In the commercial real estate industry there are a variety of lease types and also various names used to describe those leases. The term “single net lease” is sometimes used in commercial real estate to describe a lease where the tenant is responsible for paying one particular expense. In this article we’ll discuss the single net lease and point out several pitfalls you should consider. What is a …

[Read more...] about How The Single Net Lease Works

When an unexpected event interrupts business as usual, it is common to question whether or not that event will excuse parties from performing their contractual obligations. Many legal contracts, including real estate leases, attempt to address this issue with a “Force Majeure” clause, which outlines how these unexpected events are handled. Given the sudden impact of the Covid-19 Pandemic, many …

[Read more...] about What is Force Majeure and How Does it Work?

Last week we surveyed our audience about the immediate impacts of the Coronavirus pandemic on commercial real estate professionals. Below are the results and we will update with additional survey data over time. …

[Read more...] about Coronavirus Commercial Real Estate Survey Data